Moomba Operation Update 6^th Jul 2001

Santos Ltd., as operator of the Moomba Gas Plant, and on behalf of the South Australian Cooper Basin Producers, provides an update on the status of the reinstatement of the Liquids Pumping Station following the incident that occurred on 16 June 2001:

• Gas production and supply from the Moomba complex has continued at normal levels, except for a period of interruption on 4-5 July caused by liquids handling difficulties. Production is now returning to normal levels.
• Production of condensate at Moomba has not been materially affected. A temporary pumping facility was commissioned on 6 July and is online, pumping condensate to Port Bonython. Trucking of condensate to the Jackson facility in southwest Queensland for transport to Brisbane is also continuing for the time being.
• The supply of ethane to Qenos is currently running at around 80-90% of normal levels.
• South Australian oil production at Moomba recommenced on 6 July and is being pumped to Port Bonython using the temporary pumping facilities. It is estimated that the total reduction in oil production due to the incident will be approximately 230,000 barrels gross (140,000 barrels Santos share).
• LPG production continues to be redirected into sales gas or flared. To date this has lead to a reduction of approximately 30,000 tonnes gross (18,000 tonnes Santos share) in the quantity of LPG available for sale.
• LPG supplies for Australian customers have been maintained from inventories at Port Bonython and alternative suppliers.

Work has commenced on reinstatement of the permanent facilities, which is expected to be completed before the end of August.

As previously noted, all Cooper Basin Producers are covered by insurance policies that cover both property damage and business interruption (which covers revenue forgone and additional costs incurred as a result of incidents of this type). The policy excess (or deductible) is A$22 million gross (Santos share $13 million).

The interests of the South Australian Cooper Basin Producers are: